© 2015 The Karen Martin Group, Inc.

1
 Lean Management Components
• Analytical tools
• Value stream analysis & mapping
• Strategy deployment (hoshin planning)
• Metrics-based process mapping
• Value stream management
• Root cause analysis: Five Why’s, Fishbone,
• Key performance indicators (three levels,
Pareto, Problem tree, FMEA
including customer & operational metrics)
• Waste Countermeasures
• Disciplined process management via clear
• Standard work
owners & KPIs
• Quality at the Source / Error proofing
Daily kaizen
Lean
•
• 5S / Visuals
• PDSA Problem Solving (& A3 management)
• Pull systems: One-piece flow, FIFO lanes,
• Performance dialogues / huddles / standups
•
•
Go & see (gemba) management
Humble inquiry
Management Kanban
• Cells / co-location
• Level loading
• Continuously seeking voice of the customer
• Work balancing
• Purposeful meetings & reporting
• Batch size reduction
• Lean accounting
• Setup & changeover reduction
• Consensus management
• Work segmentation
Core Values / Principles / Philosophy • Autonomation
• Cross-training / multi-functional workers

• Humility • Customer value

• Respect • Flow / waste elimination
• Curiosity • Just in time
• Transparency • Visual management
• Relentless pursuit for • Work standardization
perfection

© 2016 The Karen Martin Group, Inc. 2

 Lean Leadership Webinar – Part 1
• Analytical tools
• Value stream mapping
• Strategy deployment (hoshin planning) • Metrics-based process mapping
• Value stream management • Root cause analysis: Five Why’s, Fishbone,
• Key performance indicators (three levels, Pareto, Problem tree, FMEA
including customer & operational metrics) • Waste Countermeasures
• Disciplined process management via clear • Standard work
owners & KPIs • Quality at the Source / Error proofing
•
•
Daily kaizen
PDSA Problem Solving (& A3 management)
Lean • 5S / Visuals
• Pull systems: One-piece flow, FIFO lanes,
•
•
Performance dialogues / huddles / standups
Go & see (gemba) management Management Kanban
• Cells / co-location
• Humble inquiry • Level loading
• Continuously seeking voice of the customer • Work balancing
• Purposeful meetings & reporting • Batch size reduction
• Lean accounting • Setup & changeover reduction
• Consensus management • Work segmentation
Core Values / Principles / Philosophy • Autonomation
• Cross-training / multi-functional workers
• Humility • Customer value
• Respect • Flow / waste elimination
• Curiosity • Just in time
• Transparency • Visual management
• Relentless pursuit for • Work standardization
perfection

© 2016 The Karen Martin Group, Inc. 3

 Lean Leadership Webinar – Part 2
• Analytical tools
• Value stream mapping
• Strategy deployment (hoshin planning) • Metrics-based process mapping
• Value stream management • Root cause analysis: Five Why’s, Fishbone,
• Key performance indicators (three levels, Pareto, Problem tree, FMEA
including customer & operational metrics) • Waste Countermeasures
• Disciplined process management via clear • Standard work
owners & KPIs • Quality at the Source / Error proofing
•
•
Daily kaizen
PDSA Problem Solving (& A3 management)
Lean • 5S / Visuals
• Pull systems: One-piece flow, FIFO lanes,
•
•
Performance dialogues / huddles / standups
Go & see (gemba) management Management Kanban
• Cells / co-location
• Humble inquiry • Level loading
• Continuously seeking voice of the customer • Work balancing
• Purposeful meetings & reporting • Batch size reduction
• Lean accounting • Setup & changeover reduction
• Consensus management • Work segmentation
Core Values / Principles / Philosophy • Autonomation
• Cross-training / multi-functional workers
• Humility • Customer value
• Respect • Flow / waste elimination
• Curiosity • Just in time
• Transparency • Visual management
• Relentless pursuit for • Work standardization
perfection

© 2016 The Karen Martin Group, Inc. 4

 Lean Leadership Webinar – Part 3
Thursday, October 27 –
https://attendee.gotowebinar.com/register/2039217314521750529
• Analytical tools
• Value stream mapping
• Strategy deployment (hoshin planning) • Metrics-based process mapping
• Value stream management • Root cause analysis: Five Why’s, Fishbone,
• Key performance indicators (three levels, Pareto, Problem tree, FMEA
including customer & operational metrics) • Waste Countermeasures
• Disciplined process management via clear • Standard work
owners & KPIs • Quality at the Source / Error proofing
•
•
Daily kaizen
PDSA Problem Solving (& A3 management)
Lean • 5S / Visuals
• Pull systems: One-piece flow, FIFO lanes,
•
•
Performance dialogues / huddles / standups
Go & see (gemba) management Management Kanban
• Cells / co-location
• Humble inquiry • Level loading
• Continuously seeking voice of the customer • Work balancing
• Purposeful meetings & reporting • Batch size reduction
• Lean accounting • Setup & changeover reduction
• Consensus management • Work segmentation
Core Values / Principles / Philosophy • Autonomation
• Cross-training / multi-functional workers
• Humility • Customer value
• Respect • Flow / waste elimination
• Curiosity • Just in time
• Transparency • Visual management
• Relentless pursuit for • Work standardization
© 2016 The Karen Martin Group, Inc. perfection 5
 There are many
problems to solve.

Many processes to
improve.

Many opportunities
to explore.

© 2016 The Karen Martin Group, Inc. 6

© 2015 The Karen Martin Group, Inc. 7
Distraction
Kills
© 2015 The Karen Martin Group, Inc. 9
 There is no such thing
as multitasking.*

* For cognitive tasks.

© 2016 The Karen Martin Group, Inc. 10

 Focus Law #1:
STOP DOING

Focus Law #2:

DO FEWER THINGS
AT ONCE
© 2016 The Karen Martin Group, Inc. 11
 The Power of Focus:
Organization A – Projects Completed
20
Projects
Started
12 12
Projects
Completed
3

Pre-Focus Post-Focus
12
 Organization B:
Completed Projects Per Year
73

• No additional
resources
• Higher quality
24 products launched

Pre-Focus Post-Focus 13
 A Key to Apple’s Success?
“…saying no to 1,000 things to
make sure we don’t get on the wrong
track or try to do too much.

…it’s only by saying no (or not now)

that you can concentrate on the
things that are really important.”
— Steve Jobs

14
 The Cost of Switch Tasking
Task #1: Focus Reduces Chaos.
Task #2: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Round 1 – Alternate between tasks : letter, number, letter, number, etc.
Sentence:

Numbers:

Round 2 – No switch tasking. Write the full sentence and then the numbers 1-17.
Sentence:

Numbers:
 Annual Hoshin Planning
(Strategy Deployment)

• Builds consensus around TRUE NORTH

• Creates organizational focus on solving what matters most
17
Strategy Deployment Key Feature: Catchball
What?
Who? Executive
When? Team

What?
Year 1 Who? Senior
When? Mgmt

Year
2 What?
Who? Middle
Year Mgmt
When?
3

What?
Who? Frontline
When?
18
 Strategy Deployment Plan Development
Pre-work

Gather lists of:

• All active projects and initiatives
• All stalled projects and initiatives
• All planned projects and initiatives
• All desired projects and initiatives
• All “stealth/rogue” projects and initiatives
19
 Label Four Flip Chart Pages & Hang on Wall
Must do Maybe
1. List what you could do on
3x6” post-its (active or
planned initiatives,
projects & improvement
activities). Gain consensus.

2. Categorize them (place

post-it on appropriate
Delay Eliminate
page. Gain consensus.

3. Decide what you will do.

(Move “maybe’s” onto one
of the other three pages.)
Gain consensus.
20
 Must do Maybe

Step 4
Create Action
Plan for What
You Will Do

Delay Eliminate

21
The Overly Complicated X-Matrix

22
 Modified Strategy Deployment Annual Plan
< Company Name >
2013 Priorities
1. Increase sales 5%. 2. Achieve 50% gross margin. Created: 01-14-13 Plan review dates:
2013 Goals & Objectives
3. Achieve 10% profit. 4. Improve morale (metric TBD). Revised:
X = Planned ● = Actual Level of Effort/Involvement Required
Tactical
Priority Goal or Measurable Objective Exec Owner COM CDs / PD PD
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Owner IT Mktg Ops HR Bob Fin PE Pario BMD SWS
Direct AMs Rec Mgmt
3,500 uni ts s ol d by 12/31/2013 through a l l cha nnel s
2 X X X X X X X X X X X X Bob Da na 2 3 3 3 2 3 3 1 1 3 3 1 3
(a pprox. $700K)
11 Devel op & del i ver tra i ni ng to top 50 Dea l ers X X X X X X Bob Rex/Ti m 3 3 3
Content removed for confidentiality

21 Revi s ed cours e ma teri a l s by 6/30/2013 X X X Bob Jos h R? 2 3 3 2 2

Educa ti on: 1 s chool di s tri ct s pec'd/underperformi ng
5 X X X X X X X X X X X X Howa rd Mi cha el S 1 3 2 3 3
COM di s tri butor (25) by 12/31 va l ued a t mi n $35K ea ch
10 new dea l ers on boa rd (net) ($500K per dea l er thi s
8 X X X X X X X X X X X X Howa rd Mi ke B 2 3
yea r)
5 new di s tri butors bri ngi ng $200K a nnua l rev (& 5
9 X X X X X X X X X X X X Howa rd Howa rd 1 1 1 2 3
termi na ted)
17 10 projects s pec'd by 12/31; $300K rev by 12/31 X X X X X X X X X X Howa rd Da na 1 3 3 3

29 20 by yea r-end X X X X X X X X X X X X Howa rd Ma rk H 2 3 3 3

32 TBD X X X Howa rd Howa rd

33 TBD X X X X X X X X X Howa rd Howa rd

Us eful reporti ng a nd metri cs a re es ta bl i s hed a nd i n
10 X X Ji m Ra nda l l 3 1 1 1 1 1 1
pl a ce
30 TBD X X X X X Ji m Jos h 3

31 TBD X X X X X X Ji m Jos h 1 1 1 3 1 1 1 1 1 1 1 1 1 1

25 TBD Ji m Sha nnon 3 3 1 1 1 1 1

26 Sys tem 7.0's i n pl a ce X X X Ji m Ra nda l l 3 2 1 2 1

100% a ccura te pa yrol l ; 100% ma na gement s a ti s fa cti on
15 X X X Jos h Phyl l i s 1 3
a t Apri l mgmt. meeti ng
Internet ta s k l i s t i s s i mpl i fi ed a nd s trea ml i ned for
20 X X X X Mi cha el M Mi cha el M 2 3 2 3
PDs then pl a n i s rol l ed out to PDs
Des i gn Ca l cul a tor i s upda ted s ucces s ful l y a nd rol l ed
22 X X X Nea l l Ma tt D 3 1 1 3 2 2 3
out
24 Competi ti ve Ana l ys i s compl ete a nd di s tri buted for us e X X X Nea l l Da na 2 3 3 3 3 3 3

1 Des i gn cha nged to s ol ve del a m i s s ue l ong-term X X X X X Sus a n Da vi d R 3 2 3

30 pa rts s ourced i n U.S.; compl eted pl a n for ma na gi ng
12 X X X X X X Sus a n Sha nnon 3 3 2 2
Chi na -s ourced pa rts
Wa rehous e l a i d out; ka nba n revi s ed; Sys pro
13 X X X Sus a n Sha nnon 3
i mpl emented
14 La y out compl ete; equi pment i ns ta l l ed X X X Sus a n Da vi d R 3 3
23
 POST: Plan Management
• Weekly status meetings to start, then 2x a
month, then monthly (required attendance).
• Focus: how to turn red items into green
• Expectation: Full team helps remove obstacles
• Tone: supportive but tough
• Visibility matters: post progress physically!
• Modify plan for changing conditions, but avoid
Organizational ADD

24
© 2015 The Karen Martin Group, Inc. 25
 Problems are the irritants
that produce pearls.

© 2015 The Karen Martin Group, Inc. 26

27
Scientific Problem Solving

28
29
 Clarifying the PDSA Cycle

Phase Detailed Steps

Nailing the Plan stage 1. Define and break down the problem.

2. Grasp the current condition.

of PDSA is the most Plan
Develop
3. Set a target condition.
Hypothesis
important element in 4. Conduct root cause & gap analysis.

the entire cycle. 5. Identify potential countermeasures.

6. Develop & test countermeasure(s)

Conduct
Do 7. Refine and finalize countermeasure(s).
Experiment

8. Implement countermeasure(s).

Evaluate
Study 9. Measure process performance.
Results

10. Refine, standardize, & stabilize the process.

Refine
Adjust Standardize 11. Monitor process performance.
Stabilize
12. Reflect & share learning.
30
Truth
Truth
Truth
CLARITY Truth
Truth
Truth
Truth 31
Investigation Takes Many Forms

o st g Up Spag ett ag a
eoe a e t p o e e ts
st ated d sta ce a ed du g g Up 3095 t
ag a o o s t e oo a d a d does ot c ude o g t e a e
g Up e 90 utes

AFrame

P/U

Water

Power Pole

32
 Clarifying the PDSA Cycle

Phase Detailed Steps

Iterative Problem
1. Define and break down the problem.

2. Grasp the current condition.

Definition & Plan

Develop
Hypothesis
3. Set a target condition.

Scoping 4. Conduct root cause & gap analysis.

5. Identify potential countermeasures.

6. Develop & test countermeasure(s)

Conduct
Do 7. Refine and finalize countermeasure(s).
Experiment

8. Implement countermeasure(s).

Evaluate
Study 9. Measure process performance.
Results

10. Refine, standardize, & stabilize the process.

Refine
Adjust Standardize 11. Monitor process performance.
Stabilize
12. Reflect & share learning.
33
 1. Define and Breakdown the Problem
Example: “Data integrity problem”
Says who? What are they saying
SPECIFICALLY? Go interview!
Are we talking about inaccurate data, missing
data, incomplete data, data in wrong
location, similar but slightly different data
stored in different locations, incorrect
conclusions about accurate data, or…?
Example: “No control of refrigerant
inventory (controlled substance)”
Is this true in all locations? All types of
refrigerant?
Is physical inventory quantity higher, lower,
or both when compared to computer
numbers?

© 2015 The 34
 Problem Definition:
Clarify, Qualify, Justify, Quantify
1. Is the problem clear and focused
or vague and diffuse?
2. Why is this a problem?
3. How do we know it’s a problem?
What evidence or proof exists?
4. How big is the problem?
5. Which aspect of the problem are
we going to address?
© 2015 The 35
 2. Grasp the Current Condition
• Understand the
details behind the
problem.
• Options
– OBSERVATION
– Interview
– Data analysis
– Video analysis
– Document review
– Value stream or
process mapping,
– Etc.

36
 3. Set a Target Condition
Describe the future. How does “better” look and
feel?
From/to: “If not this, then what?”
Must be measurable
Surveys enable you to convert anecdotal feedback into
quantifiable data
Should stretch the organization/team/problem
owner (improvement is largely a mind game)
Level of aggressiveness depends on :
Urgency
Timeframe
Available resources
Consensus around the problem
Degree of focus

© 2015 The 37
 4. Conduct Root Cause & Gap Analysis
What’s stopping you from 5 Why’s Cause-
Cause-and-
and-Effect Diagram

performing at the target Why? People

Lack of experience
Material / Info

No stnd spread sheet

Method

Changing schedule

condition NOW?
Time availability Input rec’d late

Why? No sense of import No standard work

Email vs. FedEx

Consider all obstacles: Why?

Budgets
Submitted Late

Forecast in other system

Physical / Environmental Why?

Manual vs. PC No milestones Weather delays

System avail. $ vs. units Dispersed sales force

Mechanical Why?
Machine Measurement Environment

Process-related
Psychological / cultural
Resource-related

© 2015 The Karen Martin Group, Inc.

38
 5. Identify Potential Countermeasures
• Standard work • Level loading
• Quality at the Source • Work/line balancing
/ Error proofing • Batch size reduction
• 5S / Visuals • Setup reduction /
• Pull systems changeover
•One-piece flow • Work segmentation
•FIFO lanes • Autonomation
•Kanban • Cross-training / multi-
• Cells / co-location functional workers

© 2015 The Karen Martin Group, Inc. 39

40
41
 A3
CUSTODIAL SERVICES
Plan Do, Check, Act

A3 Reports are
Problem Countermeasures / Implementation Plan
-Ÿ
32% of cus tomers di s s a ti s fied wi th offi ce s pa ce cl ea nl i nes- 80% of emergency s ervi ce reques ts a re to wrong conta ct - Standard work for restroom cleaning
- 22% of cus tomers di s s a ti s fi ed wi th res troom cl ea nl i nes s - Standard work checklist for non-routine items

used as:
- Servi ce l evel s va ry by bui l di ng - Standard process for measuring & mixing chemicals
- 10% of da i l y s ta ffi ng a va i l a bl e i s a l l oca ted to tra vel /check i n ti me - Restroom cleaning log
- Standard facility service plan (Plan A & Plan B)
Current Condition Travel/ Check 41% of daily
- Modify & standardize process for unplanned absences
- 31   Facility areas require custodial services Daily Staffing Availability In Time staffing is - Modify starting points and schedules to reduce transportation waste
(Hours) 16.00 10% unavailable for
custodial tasks - Evaluate fleet availability to reduce waiting waste
Survey: Custodial Services - Areas of

Coaching aid
Absent Staff
Dissatisfaction 24.00 15%

40% 32% Staff Available

Vacancies
30% 22% 94.00
24.00 15%
19% 18% 59%
20%
Special Events
10% 6% 2.00 1%
Effect Confirmation Current Actual Result
0% Metric Projected

Consensus-building
Title # Staff Hrs/Wk Hrs/Day
Office Spaces Restrooms Common Overall Conference State (+ 60 days)
Areas Rooms Lead Custodian 4 160 32
FT Custodian 8 520 64 Cus tomers di s s a ti s fi ed wi th res troom cl ea nl i nes s 22% <10%
Survey: When you require emergency FT Custodian (Vacant) 2 80 16 Avg mi nutes per res troom cl ea ni ng 35 30

tool
services, how do you request them? 33%
35% PT/Perm (avg 30 hrs each) 3 90 24 Avg hours per da y cl ea ni ng res trooms (184 res trooms ) 107 92
30% PT/Temp (avg 20 hrs each) 3 60 24
Da i l y s ta ffi ng a va i l a bi l i ty 59% 80%
25% 20% Total 20 910 160
17% Da i l y tra vel /check i n ti me (hours /da y) 16 8
20%
14%
15% Tra vel mi l es per da y 139 <70
8% 8%
10%
5%

Communication
0%
Phone Call Phone Call Phone Call Phone Call Emai l Notify
to to Custodial to Custodial to Public Custodi al
Custodi an Supervisor Manager Work s Staff On Site
Dispatch

tool
(x6000)

Target Conditions/Measurable Objectives

- 80% Daily staffing availability
- 50% Improvement - customer satisfaction with restroom cleanliness
- Defined standard work (for custodial staff and customers)

Organizational
Follow Up Actions
Implementation Schedule (Months)
Remaining Actions Owner 1 2 3 4 5 6 7 8 9 10 11 12
Root Cause & Gap Analysis

learning device
Explore options to improve cell phone availability Mark R.
- Undefined level of service (office parties, special events)
Define process for requesting and responding to emergencies Custodial Supvs
- No defined process for unplanned absences (calling in, redistribute work, etc.)
Equip carts for recycling Mark R.
- Inconsistent availability of communication tools (vary by building)
Process mapping for specialized facilities Mark R.
- No defined process for requesting/responding to emergencies Standardize Cart Equipment & Supplies Custodial Supvs
- Variation in cleaning schedules versus facility operating schedules Process improvement for other facility types, e.g. offices, common
Mark R.
- Unpredictable daily staffing areas, etc.

- Travel time + Check in Time = 16.00 hrs/day = 2 FTE Consider alternative staffing models (floaters, modified shifts) Mark R.
Actively manage vacancies Mark R.
- Customer requested personalized service (newspaper delivery, parties, trash)

42
 Alignment of A3s

Focus A3s
Senior
How are we going to grow the business? Leadership

Problem A3s
Middle
How are we going to reduce lead time to
better meet customer demand? Management

Micro A3s
How do we reduce setup time at Front Lines
workstation XYZ?

43
 Visual Management via “True North Wall”
PERFORMANCE CATEGORIES

GROWTH CUSTOMER EXPENSE

PEOPLE
(TOP LINE) EXPERIENCE MGMT

FOCUS A3 FOCUS A3 FOCUS A3 FOCUS A3 FOCUS A3 FOCUS A3

MEASURE MEASURE MEASURE MEASURE MEASURE MEASURE

1 1 1 1 1 1

MEASURE MEASURE MEASURE MEASURE MEASURE

2 2 2 2 2

MEASURE MEASURE
3 3

44
 Visual Management via “True North Wall”
Example 2 (Different Categories)
PERFORMANCE CATEGORIES

QUALITY DELIVERY COST HUMAN

IMPROVEMENT IMPROVEMENT IMPROVEMENT DEVELOPMENT

FOCUS A3 FOCUS A3 FOCUS A3 FOCUS A3 FOCUS A3 FOCUS A3

MEASURE MEASURE MEASURE MEASURE MEASURE MEASURE

1 1 1 1 1 1

MEASURE MEASURE MEASURE MEASURE MEASURE

2 2 2 2 2

MEASURE MEASURE
3 3

45
 Visual Management of Key Priorities
FY17 PRIORITIES

PROBLEM A3 PROBLEM A3 PROBLEM A3 PROBLEM A3 PROBLEM A3

#1 #2 #3 #4 #5

PROBLEM A3 PROBLEM A3 PROBLEM A3 PROBLEM A3 PROBLEM A3

#6 #7 #8 #9 #10

PROBLEM A3 PROBLEM A3 PROBLEM A3 PROBLEM A3 PROBLEM A3

#11 #12 #13 #14 #15

PROBLEM A3 PROBLEM A3 PROBLEM A3 PROBLEM A3 PROBLEM A3

#16 #17 #18 #19 #20

46
 To Learn More…
• Books
• Getting the Right Things Done (Dennis)
• Hoshin Kanri for the Lean Enterprise (Jackson)
• The Outstanding Organization (Martin)
• Managing to Learn (Shook)
• Understanding A3 Thinking (Sobek & Smalley)
• Public Workshops & Conferences
• Association for Manufacturing Excellence
• Lean Enterprise Institute
• Shingo Institute
• Tours – especially outside your industry
• Practice, practice, and more practice!

© 2016 The Karen Martin Group, Inc. 47

Questions or
comments?

48
 Karen Martin, President
[email protected]
@karenmartinopex
Blog & newsletter: www.ksmartin.com/subscribe

49